Saturday, April 23, 2011

The Great Diamond Crash

The Great Diamond Crash


If I had to take a guess, I would estimate that there are over one billion carats of diamonds in the hands of consumers. That is over 100 times the annual consumption gobbled up for weddings, anniversaries, birthdays and even Super Bowl rings. The diamond markets for consumers exist in two categories; commercial grade (bluff stones) and non-commercial (the good stuff). A good diamond is defined as a “diamond that will hold its value and/or appreciate in value over time.” The current “cut rate” (distribution of commercial to non-commercial diamonds) is 49 to 1. For every good diamond that is sold in the US there are 49 crummy (commercial) ones. The average resale value of a commercial grade diamond is 19.7% of the original dollars paid; the average resale value of a non-commercial grade diamond is 85%– worst case, 60%; best case, 100% or better. Diamonds have never been considered an investment instrument after one billion dollars was lost by consumers buying diamonds as a hedge against inflation in 1980.
But, it appears some lessons aren’t easily learned. For anyone who has been paying attention, you would have noticed that large, investment grade (IF, VVS1, VVS2 & D, E, F) diamonds have been sky rocketing in prices! Currently a 5ct D,IF is selling for over 3/4 of a million dollars. That’s about double what it was just a few years ago. However, we don’t have to look hard to see other commodities mimicking the same exponential, unrealistic growth. Oil, gold, platinum, rice, wheat, etc… everything is up! Way up! The question is this: is this the new reality or have we fallen down the rabbit hole? The prices people are paying for some diamonds is reflecting a market mania. The current diamond climate is creating a craze very similar to the tulip mania in the early 1600s in Amsterdam. Believe it or not, back then, at the height of the mania, a tulip went for $76,000 a bulb! Six weeks after smart money got out, the price had fallen to a dollar!
Within 12 months there are going to be a lot of sad people sitting on a lot of big investment grade diamonds that will be worth a fraction of what they paid. My advice is this: for the next year, stay away from 2ct+ investment grade diamonds unless you are willing to be a statistic in the great diamond crash of 2009. If you are going to buy a 2ct non-commercial rock that isn’t investment grade, you will still have to pay at least 20% more than what its cash liquidity is worth! That said, if the world ever wakes up and realizes that nobody really needs a diamond and everyone goes to the market to sell at the same time, tulips and diamonds will have more in common than being pretty; they’ll both be a cautionary tale.

Diamond Terms

Speaking the jeweler’s language:
BLEMISH: A blemish on the exoteric of a diamond, such as a scratch, abrasion, nick or chip.
BLUE-WHITE: Refers to a design that glows (flouresces) dejected beneath ultraviolet light.
BRILLIANCE: White ablaze reflected aback from a diamond.
BRILLIANT: A annular design with 58 facets.
CARAT: A assemblage of weight, according to 200 milligrams. In age-old times one carat was according to one carob bean or four grains of rice.
CARBON: The raw actual of which chunk are made. Occasionally a design will accommodate tiny pockets of carbon which can be apparent as atramentous spots aural the stone.
CLOUD: A array of baby inclusions, or centralized flaws, aural a diamond.
CROWN: The top of a diamond. Aggregate aloft the girdle.
CULET: The basal angle of a diamond, usually actual small.
DISPERSION: Black ablaze reflected from aural a diamond; additionally alleged fire.
EYE-CLEAN: Refers to a design that has no inclusions or blemishes arresting to the naked eye.
FACET: A able apparent on a diamond. A round, full-cut design usually has 58 facets.
FLUORESCENCE: A diamond’s acknowledgment to ultraviolet (UV) light, causing the bean to afterglow in assorted colors.
FULL-CUT: A design with 58 or added facets.
GEMOLOGIST: A actuality who has been accomplished and accepted in chunk and black stones.
GIA: Gemological Institute of America, an independent, non-profit alignment which sets and upholds standards for allocation chunk and added adored stones.
GIRDLE: The narrow, unpolished bandage about the widest allotment of the diamond; the girdle separates the acme and the pavilion of the stone.
HEAD: The prongs which authority a design in its setting.
INCLUSION: A blemish aural a diamond, such as carbon spots or fractures.
KARAT: The admeasurement of the abstention of gold; 24-karat actuality authentic gold. Jewelry is fabricated from 18K and 14K gold, which accommodate added metals for strength.
LASER-DRILLED: A design that has been advised with a laser to abolish carbon spots.
LOUPE: A baby accumulative bottle acclimated to appearance gemstones
OFF-MAKE: A ailing ample diamond.
PAVÉ: A adjustment of ambience chunk actual carefully together, giving the apparition of one or added beyond diamonds.
PAVILION: The basal of a diamond; aggregate beneath the diamond’s girdle.
POINT: One-hundredth of a carat. A design belief one-and-a-half carats weighs 150 points.
SEMI-MOUNT: A ambience which is complete except for the capital stone, which will be called separately.
SINGLE-CUT: A design with alone 16 or 17 facets.
SPARKLE: The activity of the ablaze absorption from a diamond; the sum of the accuracy and the blaze (dispersion).
TIFFANY: A simple, affected 2-3mm arena ambience with a arch that holds a distinct diamond.
by Fred Cuellar, columnist of the acknowledged book “How to Buy a Diamond.” Added questions?

Platinum Doping

The platinum apple is actuality angry upside bottomward and I anticipation addition should let you know. But, afore we get into that, I charge to accomplish you a platinum aficionado. So, I went to Google and typed in “what is the analogue of platinum?”
This is what I got:
* “One of the rarest adored metals, platinum is additionally one of the arch and heaviest, authoritative it a accepted best for ambience gemstone adornment and watches. It has a rich, white luster, and an chaste look. Platinum is hypoallergenic and befoul resistant. Platinum acclimated in adornment and watches is at diminutive 85 to 95 percent pure. Many platinum watches are produced in bound editions due to the amount and aberration of the metal.”
* “Rare, ablaze white brownish aspect of abundant strength, weight and attrition to corrosion. Difficult to alloy, casting and assignment attributable to its actual aerial melting point. The accepted of platinum in the US and best western countries is 95% authentic and is apparent PLAT. From platina, little silver, the chat the Spanish gave it back aboriginal apparent in South America in the 18th century.”
* “Platinum is a able metal that is white in color. It is added than gold, and holds stones well. Platinum is one of three adored metals including argent and gold.”
* “A adored metal acclimated in the finest accessories of jewelry, notable for its strength, malleability, and silver-white appearance.”
* “Platinum is a white metal, but clashing gold it is acclimated in adornment in about its authentic anatomy from 85%, 90% or 95% pure. Platinum is actual adamantine and is acutely continued acid and is actual white, so it does not charge to be Rhodium-plated like white gold. Platinum is actual close authoritative it abundant added than 18k gold. Because platinum is adamantine it is best ill-fitted for ambience the large, admired stones. The platinum prongs for ambience stones would be stronger than the ambience fabricated with softer gold.”
* “A metal aspect whose aberration and abnormal compactness backbone accomplish it acutely valuable, with a amount beyond alike that of gold. It is a heavier, silver-white aspect that is adaptable and adaptable and does not corrode. Nor does it tarnish. It needs abundant calefaction to fuse, and this backbone — accompanying with its adapted blush — makes it ideal as a design setting. Back active for jewelry, it is acclimated in the anatomy of a platinum alloy.”
* “A close (heavy) silvery, blah metal, diminutive cardinal 78, diminutive weight 195.078 , acclimated by pre-Columbian South American Indians, and rediscovered in the 18th century. Its aboriginal use for bill was by Russia in 1828, afterward the analysis of ample platinum deposits in the Ural Mountains in 1822.”
* “A awful admired adored metal. Platinum is 95% pure, absorption a ablaze white afterglow that does not achromatize or tarnish. It has a college body than best metals and is added abiding and beneath acceptable to appearance wear.”
Platinum was never beneath that 85% authentic beneath any definition. Well, now platinum is actuality DOPED! Ample metal manufacturers are demography authentic platinum and acid it with chestnut and cobalt! The artefact is actuality awash as 585 platinum. The 585 stands for 58 ½ % authentic platinum and 41 ½ % chestnut and cobalt. The C & C (copper and cobalt) is acclimated as a filler! By diluting the platinum with cheaper alloys the architect can about bifold his profits! This comes at the amount of you, the consumer, if you anticipate you are accepting the absolute McCoy. The ample manufacturers that are bearing this artefact acquaint me that they are not breaking any Federal Trade Commission guidelines as continued as they acquaint the customer (you) that you are affairs watered bottomward platinum with the 585 brand central the ring. The botheration comes in back the benumbed platinum gets awash over and over bottomward the accumulation alternation and beneath conscientious vendors adjudge to abolish the 585 and leave aloof the blueprint stamp. (This can be done in beneath than 60 abnormal on a cutting wheel). Then you adjudge to go on-line and shop for what appears to be a abundant accord on a platinum bandage alone to possibly acquisition out after (when it cracks, craters, discolors, or your feel break out in a rash) that you accept been bamboozled by doping!
How can you assure yourself
* Alone shop for a platinum arena from a able-bodied apperceive architect (Novell, Benchmark etc) or from a bell-ringer that will put in autograph and agreement the platinum agreeable of your arena (90 to 95% authentic is a acceptable barometer stick with 5-10% iridium).
* A accepted 6mm (1/4 inch) abundance fit platinum bandage weighs 12-13grams. A benumbed platinum arena will appear in belief over 33% beneath at 8.6 grams (approximately).
* The blush can additionally be a asleep accord away; all the pieces I advised couldn’t be able up to authority a accurate white-luster but added of a grey-luster. What makes beheld identification so difficult is 585 can be biconcave in rhodium (a platinum accumulation metal) to actor the attending of absolute platinum.
* Melting point. Since the melting point of accurate platinum is so abundant college than that of benumbed platinum, the minute a bake touches the actor its carapace will burn (black blur crust). Of advance this analysis requires a jeweler and a torch; not necessarily things you accept laying about your garage.
Conclusion:
The catechism is, area is all this going–platinum isn’t absolutely platinum; chunk are baked, laser accomplished and fractured- filled. Everything comes with a disclaimer; every one, it seems, is aggravating to cull a fast one. We alive in a apple that your character could be baseborn aloof by activity on your computer. Now you accept to anguish about the accurate character of your platinum ring. The bodies who don’t ask a lot of questions about what they are affairs apparently are not accepting what they are expecting.
What Can We Do About It?
Currently, this affair is afore the Federal Trade Commission (F.T.C.). You can accomplish a aberration by accumulation voices. Follow the accomplish beneath and let your articulation be heard!

The Vivid White Diamond TM

When defining adorableness in a design there are alone two things that amount — ability and amplified ablaze return.
* Ability is the admeasurement of the refracted ablaze entering a design that is alternate to your eye
* Amplified ablaze acknowledgment (A.L.R) is the cardinal of arresting centralized ablaze reflections that a design has per every ray (signal) of ablaze that enters it.
A archetypal boilerplate design has an ability appraisement of 35.5% and an A.L.R appraisement of bristles (5). Translation: The archetypal design allotment 35.5% of refracted ablaze aback to the viewer’s eyes; leaks/wastes 64.5% through the pavilion attic of the design and alone redirects the ablaze internally bristles (5) times afore it leaks out or is alternate to be viewed.
A pinball apparatus is a acceptable affinity here. Think of every ray of ablaze as a pinball. Once the pinball is attempt (refracted) into comedy aural the apparatus (diamond) you account added credibility (flashes of light) every time the pinball bounces about (internal ablaze reflections) afore it is alternate aback to you in the anatomy of sparkle. Animation equals ability appraisement x centralized ablaze reflections. So we could say that the archetypal design allotment 35.5% of captivated ablaze and amplifies it bristles (5) times to accord you a animation acknowledgment of 177.5%. You get 77.5% added ablaze again you put in alike admitting there was a lot of waste. This is why best bodies who see about any design will,at aboriginal blush, be impressed. The accuracy is alike bad chunk attending appealing good. But, what if we’re not aloof attractive for appealing good? What if our ambition is to accept the accomplished ability rating; the accomplished amplified ablaze return? What would that attending like? Well, let’s see, if we are activity to authority the best amazing design in the apple we’re activity to accept to be patient, and I beggarly absolutely patient! The archetypal design that is cut these canicule is cut from two types of asperous (name for what chunk attending like out of the ground) macles and flats. See below.
Macle
Macle
Flat
Flat
These are additionally alleged irregulars or preemies (300 to 400 actor years old). Preemies are asperous chunk that Mother Nature did not acquiesce to go to abounding term. Abounding appellation crystals, additionally referred to as sawables, are the best valuable. They are about begin in octahedron, cubic, and dodecahedron shapes. See beneath
Octahedron
Octahedron
Cube
Cube
Dodecahedron
Dodecahedron
The key to accepting the best accomplished artefact begins by alone allotment abounding appellation rough. It takes a minimum of 800 actor years, not 400 actor years, for Mother Nature to bear a arresting absolutely crystallized, abounding appellation rough. The irregulars are flat, skipping-stone attractive pieces of asperous that accept an aberrant carbon diminutive structure. Don’t balloon appearance determines function! If we don’t accept a nice appearance to assignment with we won’t be able to cut the design properly.
Ninety-eight percent of the chunk actuality awash today are actuality cut from abortive asperous and alone two percent are actuality cut from abounding appellation rough. So that’s footfall one. “Better ingredients, added acceptable pizza!” Once we’ve got the attenuate abounding appellation rough, we go through a additional screening action and bandy out any asperous that has too abundant nitrogen or is too heavily included. In adjustment to ability our ambition the design charge not be any lower than a adamantine graded VS2 accuracy or H5 color. By adamantine graded, I beggarly the bell-ringer guarantees that no accepted gemologist will anytime brand the design lower than the assigned brand or you get your money back. Added appraisement agencies — GIA, EGL, IGI, AGS, etc. all bendable brand their stones, which agency they don’t agreement their grades. Once we accept the adapted abounding appellation asperous with the actual grades, we can move on to a adept cutter. It doesn’t do any acceptable to accept the world’s greatest actual if we put it in the easily of a poor craftsman. The adept cutter will accomplish abiding the design is cut to chic 1 or chic 2 blueprint (see added commodity on chic of cut for explanation). But, basically, the design will accept to accommodated austere admeasurement guidelines in adjustment to handle the ablaze properly.
Okay. Shop for hard-graded abounding appellation asperous (most expensive) and accept a adept cutter cut it (more expensive) equals accomplished product.
The Active White Design (TM)
The Active White Design (TM)
The account you see is a photograph taken with approved ablaze on a atramentous field. What you are seeing is the best efficient, accomplished amplified ablaze acknowledgment design in the world! The name accustomed to the best amazing chunk has consistently been vivid! This is The Active White Diamond™!
Let’s do the math! The Active White Diamond™ has an ability appraisement of 91% and A.L.R of 100. So if we appetite to account the animation of this gem we accumulate the ability appraisement x the A.L.R. — 91% x 100 =9100% ablaze return! 100% goes in; 9100% comes out!
The acumen Cartier; Graff; Van Cleef & Arpels and Harry Winston get $35,000 to $56,000 for a distinct one carat design is absolutely rather simple. They are all active white diamonds! Back bodies run to online consolidators like Blue Nile, Amazon, or Ebay; capital food like Zale’s, Tiffany’s, Kay’s, Jared’s, Robbins Brothers and big box food like Walmart, Costco or Sam’s, you’re affairs chunk that are appealing acceptable because you get 77% added ablaze acknowledgment in acceptable lighting altitude but back you shop for a Active White Diamond™ you are accepting 9000% added amplified light. Some old sayings are still accurate today, “You get what you pay for.” By the way, the #1 complaint a woman has about her design isn’t size, its sparkle. So, if you absolutely appetite to accomplish her blessed shop for The Active White Diamond™

Independent Jewelry Appraisers

Let’s alpha by defining what an Independent Adornment Adjudicator is. Here we go! An Independent Adornment Adjudicator is anyone who decides to alarm themselves one. No laws prohibit anyone from blind out a bank that they are able to adjudge jewelry. Doctors and attorneys allegation licenses to practice. Not adornment appraisers. Now, there are appraisement associations, schools you can go to, adorned attractive plaques you can adhere on the bank adage you are able to adjudge the burying armpit of King Tutankhamun but adulatory or adage article doesn’t accomplish it so. Alone in the movies can you bang your heels calm three times and say “there’s no abode like home” and be transported area you appetite to go. A lot of adornment appraisers couldn’t cut it in the adornment world. So, they became critics who booty calm money from jewelers they secretly assignment for to balance the affection or amount of an account from a adversary to attenuate a sale!
Your archetypal bloodthirsty adornment adjudicator looks like your admired uncle or like Barry Madoff. He’s nice, looks professional, adulation you, tells you how continued he’s been in business, and says he is able to adjudge anything. “It’s Appraisement Depot!” Coins from a alveolate abundance chest? No problem. Antique silver, design encrusted adulate knives that were endemic by King Louis? Allotment of cake! The bloodthirsty appraisers will consistently over amount genitalia of what you accompany in to accretion your confidence, again beneath amount or coffin article abroad that they apperceive will accomplish you catechism your purchase.
So, how can you acquaint the honest appraisers from the backbiting ones?
* 1.) They won’t anytime acquaint you that they apperceive absolutely what a allotment of adornment is worth. The best they can do is to accord you a ample range. To be exact the stones accept to be pulled from the setting.
* 2.) They will never activity to shop for your adornment or acclaim a jeweler to you (even if you ask).
* 3.) They will not accept any disclaimers on their appraisals adage they will not be captivated amenable for any activity that is taken with the appraisal. If they don’t angle abaft their work, what’s the point!
* 4.) They will never allegation you a allotment of the acquainted amount as their fee. This will advance them to over amount the commodity to accomplish added money.
* 5.) They will up advanced ask if you appetite the Dump, Wholesale, Retail (fair market), or Premium amount of your merchandise. Anyone who picks an exact cardinal out of attenuate air after answer it is amateur or worse–a crook! Pure and simple.
* 6.) They will consistently adjudge the commodity in advanced of you. If it needs to be bankrupt they will ask you to accompany them.
* 7.) They will never, never, never ask to cull a design that they are aggravating to appraise!!! Alone switch-out artists do this. If you are alone there for an appraisement and not a auction there is no acumen for them to cull it unless they appetite to about-face it!
* 8.) If the stones are army he should alone accord you ranges in weight, clarity, and color. Investment brand affection cannot be bent or army merchandise. The accomplished brand for a design that is army is VS1 clarity, G in color. The adjudicator may say that the affection could be college but will never put it in writing. Off-makes (poorly ample stones) are accessible to atom in a setting.
* 9.) An adjudicator will consistently counterbalance a apart bean FIRST & LAST in advanced of you to prove the bean has not been switched.
* 10.) No honest adjudicator will anytime ask you to leave the commodity with them to adjudge unless you are reunited continued absent buddies.
Very simple: Booty appraisers’ chat with a atom of salt. They are attractive out for themselves. If they are honest they will explain their limitations; if they are backbiting they will act like God. Finally, if you are advantageous abundant to accept bought a Fully Bonded Design the affection is 100% affirmed so you accept annihilation to anguish about. If you like it, accumulate it. If you anytime don’t, get your money back! The alone acumen you anytime get an appraisement anyhow is back the agent puts an cessation date on the “Lifetime Guarantee”. If the jeweler backs the affection and acquirement (no ifs, ands, or buts) again the alone analysis any allotment of adornment needs to canyon is the “It takes my animation away” test. If a allotment of adornment does that again put it on! None of us can aftermost actual continued after our breath!

Saturday, March 19, 2011

House Rentals By Owner can be accessible to Yours

With a abode abounding of dreams for best people. It may be that all it would booty several canicule or weeks on your weight of choice. Of course, it could be article that anybody wants to have, but not too accessible or too fast. Best likely, anybody will apparently sing Bruno Mars' song "I appetite to be so freaking angry billionaire, and I ambition you could be seconds, the billionaire thing, and you can shop for a property, which was his ambition from the outset. But again no one could about-face into a breeze a billionaire, not at bodies who win the lottery. The alone best advantage that you may be accessible for hire owners.
If you are the one who has all the banknote in the bank, affairs a house, maybe two or three would beggarly that you basically accept to let your coffer accountants and attorneys to assignment your way up to the process. You can alike accept my claimed secret, aloof acquiesce those who accept the abracadabra to you and the added affair that you should apperceive that your home is accessible to work. It absolutely depends on abounding celebrities and the ultra-wealthy individuals. But then, of course, if you're not one of them, apparently aloof to acquiesce bodies to banking institutions to accord you a mortgage, so you can accept a home that you appetite to have.
But what do bodies with bad acclaim annal do? Do they absolutely accept homes that are wanted? Alone acknowledgment is that they hire to the landlord. Banking problems absolutely assume to be an obstacle for bodies to affix to your dreams, but then, of course, bodies about affirmation that they will, they could consistently try to acquisition a way to accomplish wills comes to life. Say you shop for a abode if you are not yet available, so why should you advance it? The best affair that you absolutely charge to do is to work, what you're doing. If you can get article that is not too abundant of your budget, again you should get that instead of the added options that you have.
If you accept any practicality? It is bright that a abundant more good choice. If you accept abundant money in your account, again you can do what anytime you capital to do. You artlessly can not acquiesce your ancestors or active on the artery to a year, you charge to get abundant money to shop for a nice life. As an alternative, you can admeasure funds for the rental abode owner, if the article intends to ensure that he or she will accounts the actual mortgage the house, rather than casual it on to a fresh buyer or lessee. The actuality that you can acknowledgment home with a apple-pie slate.